HelloWorld Travel Limited (ASX: HLO), a company which provides international and domestic products and services announced its acquisition of Show Group Enterprises which is a travel management specialist and a freight logistics company offering services to entertainment, film, arts, fashion, corporate and sporting industries on 20 December 2018.
Early this morning, HLO acquired the entire business of the Show Group from Avis Budget Group Inc. and also the transaction got executed. Addition of the Show Group will enhance the existing core business of HLO with additional knowledge and capability. The purpose for acquiring The Show group was that it would complement the corporate activity of QBT, AOT Hotels, APX and GO C&I with sector expertise. With the execution of the transaction, the business will be taken forward as Show Sport, Show Corporate, Show Travel, Show Film, Show Event, Show Fashion, Show Leisure and Show Freight.
To acquire the show Group, HLO needs to pay $7.0 million in the form of cash. The company will be spending this amount through its existing cash balance and its facilities. The process of the acquisition was as per the asset sale agreement between the HelloWorld Travel Limited and the Avis Budget Group Inc. The company believes that through this acquisition, there will be an increase in the earnings in FY2019.
Mr. Burnes who is the CEO of HelloWorld Travel Limited highlighted the reputation of the Show Group in its field and its excellent service to its client for more than 30 years. He is also pleased after the acquisition of this business and introducing it to HLO.
The official listing date of HLO on ASX is 13 September 2000. Since its listing on ASX, the performance of the company remains positive. The ten years performance report of the company was 55.83%. The last one-year performance of the company is 21.21%.
For the FY2018 which ended on 30 June 2018, the company generated revenue worth $326.874 million. The EBITDA for the period was $65.216 million which increased by 18.2% as compared to the previous financial year. There was also an increase in the profit after tax by 48.1 % from the last fiscal year. The profit after tax which was attributable to the owners of the company was $31.918 million. The board declares a final dividend of 11.0 cents per share. The balance sheet of the company gives a positive influence on the investors as the company has maintained a net asset base of $302.210 million and also there is a decrease in the accumulated losses in FY2018. However, the current asset of the company is $336.138 million which is very close to its total current liabilities of $302.636 million which indicates that the company will somehow manage its net working capital and its short-term obligations. The total shareholder’s equity is worth $302.636 million.
By the end of FY2018, the net cash and cash equivalent were $203.528 million. At present, the market price of the share is A$6.035 (AEST: 2:22 pm, 20 December 2018) with the market capitalization of A$747.05 million.
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